USPX vs. FAAR
USPX (Franklin U.S. Equity Index ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - USPX is a Large Cap Blend Equities fund tracking the Morningstar US Target Market Exposure Index, while FAAR is a Commodities fund actively managed by First Trust. USPX is passively managed, while FAAR is actively managed. Over the past 10 years, USPX returned 12.68%/yr vs 4.74%/yr for FAAR. At a 0.07 correlation, their price movements are largely independent. USPX charges 0.03%/yr vs 0.95%/yr for FAAR.
Performance
USPX vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, USPX achieves a 9.89% return, which is significantly lower than FAAR's 20.28% return. Over the past 10 years, USPX has outperformed FAAR with an annualized return of 12.68%, while FAAR has yielded a comparatively lower 4.74% annualized return.
USPX
- 1D
- 1.11%
- 1M
- 0.97%
- YTD
- 9.89%
- 6M
- 10.11%
- 1Y
- 26.62%
- 3Y*
- 20.85%
- 5Y*
- 12.64%
- 10Y*
- 12.68%
FAAR
- 1D
- 0.31%
- 1M
- -4.57%
- YTD
- 20.28%
- 6M
- 20.86%
- 1Y
- 26.92%
- 3Y*
- 10.85%
- 5Y*
- 8.03%
- 10Y*
- 4.74%
USPX vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USPX Franklin U.S. Equity Index ETF | 9.89% | 17.78% | 24.97% | 27.07% | -18.88% | 19.53% | 9.72% | 26.60% | -7.78% | 23.80% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.28% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between USPX and FAAR is -0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.04 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Jun 3, 2016 | 0.07 |
The correlation between USPX and FAAR shifts across timeframes, from -0.07 (1 year) to 0.07 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
USPX vs. FAAR — Risk / Return Rank
USPX
FAAR
USPX vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin U.S. Equity Index ETF (USPX) and First Trust Alternative Absolute Return Strategy ETF (FAAR). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| USPX | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.09 | ||
| Sortino ratioReturn per unit of downside risk | -0.03 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.34 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.90 | 4.72 | -1.81 |
| Martin ratioReturn relative to average drawdown | 12.82 | 14.40 | -1.58 |
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Drawdowns
USPX vs. FAAR - Drawdown Comparison
The maximum USPX drawdown since its inception was -31.21%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for USPX and FAAR.
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Drawdown Indicators
| USPX | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -31.21% | -18.03% | -13.18% |
Max Drawdown (1Y)Largest decline over 1 year | -9.15% | -5.68% | -3.47% |
Max Drawdown (3Y)Largest decline over 3 years | -19.21% | -11.54% | -7.67% |
Max Drawdown (5Y)Largest decline over 5 years | -24.60% | -18.03% | -6.57% |
Max Drawdown (10Y)Largest decline over 10 years | -31.21% | -18.03% | -13.18% |
Current DrawdownCurrent decline from peak | -1.43% | -5.39% | +3.96% |
Average DrawdownAverage peak-to-trough decline | -4.43% | -7.83% | +3.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.07% | 1.87% | +0.20% |
Volatility
USPX vs. FAAR - Volatility Comparison
Franklin U.S. Equity Index ETF (USPX) has a higher volatility of 4.78% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.50%. This indicates that USPX's price experiences larger fluctuations and is considered to be riskier than FAAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| USPX | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.78% | 2.50% | +2.28% |
Volatility (6M)Calculated over the trailing 6-month period | 10.06% | 9.71% | +0.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.65% | 13.36% | -0.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.27% | 12.95% | +3.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.96% | 11.53% | +4.43% |
USPX vs. FAAR - Expense Ratio Comparison
USPX has a 0.03% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
USPX vs. FAAR - Dividend Comparison
USPX's dividend yield for the trailing twelve months is around 1.04%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.57% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% | 0.00% |
USPX Franklin U.S. Equity Index ETF | 0.82% | 1.07% | 1.23% | 1.35% | 2.21% | 2.40% | 2.51% | 3.07% | 2.91% | 2.60% | 4.89% |
Frequently Asked Questions
USPX and FAAR have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USPX has higher volatility (4.78%) compared to FAAR (2.50%). In terms of maximum drawdown, USPX dropped -31.21% vs FAAR's -18.03%.
On 10-year performance, USPX leads with 12.68% vs 4.74% for FAAR. On fees, USPX is cheaper at 0.03% per year. On volatility, FAAR has been the lower-risk option at 2.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, USPX has performed better with a 12.68% return vs 4.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USPX is cheaper with a 0.03% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 0.82% for USPX.
USPX is categorized as Large Cap Blend Equities, while FAAR is Commodities. They also come from different issuers: Franklin Templeton and First Trust. Their fees differ too: 0.03% for USPX and 0.95% for FAAR.
USPX currently has the higher Sharpe Ratio (2.10 vs 2.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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